Gov. Larry Hogan is proceeding with unnecessary reductions in services that will hinder the progress the state has made in helping more Marylanders get the health care they need, jeopardize the safety of police and correctional officers throughout the state, and potentially lead to layoffs at state universities. The governor is pushing ahead with these across-the-board cuts to the state budget that will take $118 million from essential state services while he also remains unwilling to use more than $200 million in available revenue to help ensure that Marylanders have good schools, safe communities, and reliable access to health care. Because of the governor’s abrupt budget reductions, most state agencies will have to make cuts that affect service Maryland residents rely on every day, according to a detailed report from the state Department of Budget and Management. Of particular concern are cuts in public safety areas. The state police will…

Though – depending on who you ask — Maryland may or may not be dubbed “business friendly” by the assorted organizations that compile state business climate rankings, in fact the state does stand out on one important measure: the value businesses receive for their tax investment. Maryland’s business community gets as much as $1 in benefits for every 80 cents it invests in the state through taxes, the best value in the country, according to a report by the Council on State Taxation (a business group) and Ernst & Young. In part, this result is because corporate taxes make up a smaller share of Maryland’s overall revenues than in all but one other state. But it is also because the state has consistently recognized the benefits of investing in the pillars of our modern economy – including education, healthcare, transportation, and public safety. Today, the Maryland Economic Development and Business…

Women play an important role in the success of the Washington region’s economy, and Maryland can do more to foster their economic security through job training that gives them the skills they need to thrive in today’s economy. Although women in this region are more likely than their counterparts in other areas to have higher earnings and hold manager-level positions, job training programs would help hundreds of thousands of women get the kinds of jobs that would allow them to better provide for themselves and their families. Just over half of women living in households with incomes less than $23,340 work in the Washington region. In comparison, 72 percent of women with household incomes above that threshold work, according to new research by the Washington Area Women’s Foundation. For many impoverished women, lower education levels disqualify them from higher-paying jobs, particularly within the highly competitive Washington region. There is a…

Despite almost $60 million in additional revenue specifically for education spending due to record high casino profits, thousands of Maryland public school teachers and staff face possible termination. That’s because surplus funds are not going toward increasing the state’s education spending levels of the year prior, but instead being used to replace education funds that were spent on other things. The state took in a record $1 billion in revenue from Maryland’s lottery and casino gambling activity during the last fiscal year. This total was comprised of $525 million from the lottery and $487 million from the state’s five casinos, representing a 19.1 percent increase from the previous year and a 47.7 percent increase from June 2012 (when there were three fewer casinos), according to figures from the Maryland Lottery and Gaming Control Agency. This dramatic increase in revenue resulted in a contribution of $387.7 million to the Maryland Education…

Families will struggle to make ends meet for no good public policy reason under Governor Hogan’s plan to lay off up to 63 state workers—in the department that runs the state’s prisons and parole and probation service. The Administration’s proposal to cut positions from the Maryland Department of Public Safety and Correctional Services would be in addition to the 2 percent across the board cuts already slated to occur this year. The Governor hoped to solidify the elimination of these positions earlier this month at the Board of Public Works meeting. However, the board decided to take no action until its next scheduled meeting on August 26. As Patrick Moran, president of AFSCME Council 3 (which represents state workers) said recently, “Governor Hogan boasted in January that he had submitted a budget without the need for layoffs. But when long time, dedicated employees are told they will be terminated, but…

The prime contractor responsible for initial problems with Maryland’s healthcare insurance exchange has agreed to pay the state and federal government $45 million because of its poor performance. Maryland was one of 14 states that established their own health insurance marketplace to help residents get medical coverage under the federal Affordable Care Act. Maryland’s online portal failed within minutes of launching in early 2014, and for weeks afterward residents had a very time difficult navigating the site. Noridian Healthcare Solutions and the state reached a settlement that will avoid what could have been a lengthy court battle. The company will pay $20 million upfront and an additional $25 million in annual installments of $5 million over five years. Maryland and the federal Centers for Medicare and Medicaid Services will recover 61 percent of the $73 million they paid Noridian for work on the online exchange that opened in 2013 to…

An alternative way of paying hospitals for care is saving Maryland millions of dollars while providing patients with high quality care. Hospitals in the state of Maryland have generated over $100 million in Medicare savings over the past year as a direct result of the alternative system for paying hospitals for the care received by Medicaid patients. The new system was created in partnership with the U.S. Centers for Medicare and Medicaid Services (CMS) and the state’s medical institutions, and initial results show that it is successfully curbing costs, while maintaining high service levels. Maryland was the first state in the country to implement this type of system statewide. It no longer ties payment to hospital admissions. Instead, the new system pays hospitals a lump sum of money to cover all Medicaid services provided to patients. This payment will grow in tandem with the state’s economy (3.58 percent in the…

Decades of responsible fiscal management continue to pay off as Maryland maintains the coveted triple-A bond rating that enables the state to pay the lowest possible interest when borrowing money for projects that boost the economy and protect the public good. All three New York bond rating agencies recently commended the state for its diversified economy, high personal income levels, and prudent financial management. However, despite giving the state much praise, the ratings agencies also expressed concern about a handful of issues that the state would do well to address. Earlier this month, the Maryland State Treasurer’s Office published reports from the three rating agencies — Fitch, Moody’s, and Standard & Poor’s. Maryland is one of only 11 states with a AAA bond rating, which it has held uninterrupted for decades. According to Moody’s evaluation, the outlook for Maryland’s general obligation debt is stable. Moody’s also noted that the state…

The prospects for all of us in Maryland are poorer because 180,000 of our neighbors are experiencing a childhood where seeing a doctor is a rare occurrence, education opportunities are limited, and hunger is often a part of their daily existence. One in seven Maryland children—14 percent—live in poverty, which can be defined in 2015 as a family of four making $24,250 or less. This total is up from 10 percent in 2008, according to the Annie E. Casey Foundation’s “2015 Kids Count Data Book: State Trends in Child Well-Being.” During the recession, Maryland fared better than many states because so many people in the state work for the federal government that job loss was relatively low.  However, post-recession, the federal government has cut spending in the region, weakening Maryland’s economy while increasing the likelihood of rising poverty. Even though child poverty is increasing in Maryland, the state received an…

Providing health care to nearly one in five Marylanders, Medicaid is crucially important to the state’s wellbeing and more than earns the protection legislators gave the program this year. Medicaid – which recently turned 50 years old – enables low-income seniors, children, and people with disabilities to get medical care they otherwise couldn’t afford. So it helps them be valuable contributors to the state economy. Almost 1 million Marylanders participate in Medicaid, a joint state and federal program. Because of Medicaid one of every three children in the state can see a doctor when they are sick, and receive the vaccinations and screenings they need to increase their chances of good health, thanks to Medicaid. Medicaid, along with the Children’s Health Insurance Program (CHIP), has significantly reduced the number of children nationwide whose families lack health insurance. In Maryland, 95.6 percent of children are now insured; and since the recent…